SUP 6B.4 Limitations and requirements that the FCA may impose when exercising its section 55J and 55L powers

When varying Part 4A permission at its own-initiative under its section 55J power (or section 55Q power), the FCA may include in the Part 4A permission as varied any limitation or restriction which it could have imposed if a fresh permission were being given in response to an application under section 55A of the Act.

Examples of the limitations that the FCA may impose when exercising its own-initiative variation power include limitations on: the number, or category, of customers that a firm can deal with; the number of specified investments that a firm can deal in; and the activities of the firm so that they fall within specific regulatory regimes (for example, so that oil market participants, corporate finance advisory firms and service providers are permitted only to carry on those types of activities).

Under its section 55L power (or section 55Q power), the FCA may, at any time and of its own initiative, impose on an authorised person such requirements as it considers appropriate.

Examples of requirements that the FCA may consider imposing when exercising its own-initiative power are: a requirement not to take on new business; a requirement not to hold or control client money; a requirement not to trade in certain categories of specified investment; a requirement that prohibits the disposal of, or other dealing with, any of the firm’s assets (whether in the United Kingdom or elsewhere) or restricts those disposals or dealings; and a requirement that all or any of the firm’s assets, or all or any assets belonging to investors but held by the firm to its order, must be transferred to a trustee approved by the FCA.